Toronto-Dominion also has made "significant investments" in technology and infrastructure for the business, he said.
'Lower Risk Appetite'
The bank disclosed on Jan. 26 that its insurance business earned C$541 million last year. The firm offers home, auto, life and health insurance across Canada, and acquires clients mainly through direct channels and affinity groups instead of through insurance brokers. There are opportunities to sell insurance to wealth-management clients, according to Pedersen.
"We have a lower risk appetite than most insurance businesses," Pedersen said. "This is an insurance business that is owned and operated by a bank, and a fairly conservative bank at that. So we just won't take some of the risks that many insurance companies take."
Toronto-Dominion rose 0.6 percent to C$77.93 at 9:34 a.m. in Toronto trading. The shares have climbed 4 percent in the past year, compared with a 4.4 percent decline for the 42- company S&P/TSX Financials Index.